Nasdaq Drags Behind the Stock Market Rally; Trade These Charts

Technical momentum readings turned on a dime after an election night plunge that resulted in mixed weekly charts for the five major U.S. equity averages.

The weekly charts for the Dow Jones Industrial Average (INDU) , Dow Transports and the Russell 2000 ended last week positive. The Dow 30 was the only one of the five major averages to set a new all-time intraday high, which was 18,873.66, set on Nov. 10.

The S&P 500 and the Nasdaq Composite (NDAQ) ended last week with neutral weekly charts, as momentum continued to decline for both. The Nasdaq 100 continued to have a negative weekly chart, as momentum names like Apple (APPL) , Amazon (AMZN) , Alphabet (GOOGL) and Facebook (FB) ended the week with negative weekly charts.

The weekly chart for S&P futures shows that if the S&P sustains gains this week, it will have a positive weekly chart next week.

Diamonds closed Friday at $188.47, up 8.3% year to date, after setting its all-time intraday high of $188.82 on Nov. 10.

The weekly chart for Diamonds ended last week with an upgrade to positive from negative with the ETF above its key weekly moving average of $182.74 and well above its 200-week simple moving average of $167.53. The weekly momentum reading snapped up to 33.82 last week, up from 30.18 on Nov. 4.

Investors looking to buy Diamonds on weakness to its 200-day simple moving average of $177.58 could do so on election night, as Dow futures plunged by more than 800 points. My quarterly level of $183.08 will likely be a magnet until the end of 2016. Investors looking to reduce holdings should do so on strength to $195.95, which is a key level on technical charts until the end of November.